Indiana Jones NV enters into a 6-year lease of equipment on December 31, 2021, which requires 6
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Indiana Jones NV enters into a 6-year lease of equipment on December 31, 2021, which requires 6 annual payments of €40,000 each, beginning December 31, 2021. In addition, Indiana Jones guarantees the lessor a residual value of €20,000 at the end of the lease. However, Indiana Jones believes it is probable that the expected residual value at the end of the lease term will be €10,000. The equipment has a useful life of 6 years. Prepare Indiana Jones’ December 31, 2021, journal entries, assuming the implicit rate of the lease is 6% and this is known to Indiana Jones.
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Related Book For
Intermediate Accounting IFRS
ISBN: 9781119607519
4th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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